Is Buying A Second Hand Car Profitable ?

KOLKATA: Is Buying A Second Hand Car Will Give You Benefit ? Lets Find Out ?

Around 2,500 second hand or pre-owned cars are sold in Kolkata every month. Of this, less than 5% vehicles are transacted through organized channels. In other cities, at least 10% cars are bought and sold through outlets.
Around 1.8 million used cars will be sold countrywide this year. This figure will cross 2 million in 2010, according to projections.

The average price that a pre-owned car fetches is Rs 2.5 lakh in the rest of the country, it is Rs 2.25 lakh in Kolkata.

The perception that cars in Kolkata fetch better resale value than other metros due to low usage and proper care is mistaken. Data from the largest organized dealer of used or pre-owned cars shows that cars in Kolkata fetch Rs 5,000 to Rs 50,000 less than elsewhere.

Never mind the conservative driving skills, better care and maintenance of cars in the city. They are the best bargain when they are put on the block. For pre-owned cars in no other major city sells as cheap as they do in Kolkata.

Owners in Chennai and Bangalore get at least Rs 35,000-Rs 50,000 more on a car of same make, mileage and condition than one in Kolkata. The difference with Mumbai is Rs 8,000-Rs 15,000 and Delhi Rs 5,000-Rs 12,000.

Internet claims to change all that by ushering in ease of transaction and transparency into the pre-owned car business with a web-based pricing valuation tool that will allow car owners to get their car price assessed.

Online Websites seek details like make, model, year of manufacture, kilometres done, city in which it is used and ownership. Once someone fills it up, a tentative price will be quoted. Thereafter, an evaluator will visit the premises and inspect the car before quoting the final figure that will be valid for a week. The owner then has the choice of retaining the car or selling it at the price.